Money plays a pivotal role in our lives, yet its complexities are such that no one can be totally free of misconceptions about it. This article deals with only a few basic ideas, but I think it can help those who want to gain a better insight into what money is and how it works. All references are to the money system in the U.S. and do not necessarily apply to other countries. The …showed first 75 words of 1340 total…

…showed last 75 words of 1340 total…economy off track towards inflation or recession. The Fed must act to keep the supply of credit money in reasonable balance with the production of real goods and services -- its basic monetary policy challenge. That calls for a great deal of knowledge about the economy as well as skill in interpreting the data. The Fed has made its share of mistakes over the years that are usually not obvious until much later ------------------------------------------------------------------------ **Bibliography**